Propane: the efficient choice for North Carolina!

By the numbers

New water heater standards increase the cost of storage tanks

New water heating standards from the U.S. Department of Energy went into effect in 2015. Under the National Appliance Energy Conservation Act, all new storage tank water heaters—regardless of fuel source—must meet a higher efficiency rating.Manufacturers say those increases in energy efficiency can be achieved in many cases by using more insulation. However, this will make the storage tank units a few inches taller and wider—while also increasing its cost. Depending on the model and tank capacity, new tank water heaters may be as much as three times more expensive.

That increased size will also have a big effect for homes with space constraints; a small propane gas tankless unit that hangs on the wall will be a much easier fit than new, bigger tanks.

So what should you do if you need a new water heater? A tankless water heater is the best solution because it meets new efficiency standards and solves all of your space problems. And once you get your tankless unit installed, you won’t have to worry about replacing it for a long time. Tankless water heaters typically last twice as long as a tank water heater—up to 20 years or more—because they are less likely to corrode.

These regulatory changes are also expected to close the upfront cost gap between propane tankless units and electric storage tank heaters. Propane tankless units may even end up having a price advantage.

Joe Holliday, director of business and product development at tankless water heater manufacturer Rinnai, says these new energy-efficiency requirements may motivate more people to choose propane tankless water heaters over electric water storage tanks.

“If you’re talking about an electric storage tank heater that used to cost $300 to $400 now being priced at upward of $1,000, that really closes the gap,” Holliday says.